Category Archives: Just transition

Stephen Golub: The Price Benicia Pays: Valero, Public Health and Safety, and Moving Forward

Problematic histories of hazardous violations, accidents and incidents, and possible contributions to cancer and other negative health impacts.

 Stephen Golub, A Promised Land – America as a Developing Country

By Stephen Golub, Benicia resident and author. May 29, 2025 [An earlier version of this appeared in his “Benicia and Beyond” column in the Benicia Herald on 5/25/25.]

Executive Summary

As Benicia, the Valero Energy Corporation and California officials consider the future of the Texas-based firm’s Benicia refinery, this paper examines Valero’s and the petrochemical industry’s problematic histories of hazardous violations, accidents and incidents, most notably their possible contributions to cancer and other negative health impacts. It aims  to inform Benicia’s and California’s planning and policies, regardless of whether Valero closes the facility next year (its stated intention) or seeks to retain it indefinitely.

The data documenting such hazards includes:

Research from across the country and world indicates elevated disease rates in refinery communities. For instance, a wide-ranging study published in 2020, covering numerous Texas refineries, determined that “proximity to an oil refinery was associated with a significantly increased risk of cancer diagnosis across all cancer types examined [bladder, breast, colon, lung, lymphoma, and prostate]. People living within 10 miles of an active refinery were more likely to have advanced disease or metastatic disease.”

Benicia’s cancer rates are much higher than those of the state and county, and include a breast cancer rate nearly double that of California. More specifically, the city’s breast cancer rate is 93.7 percent higher than California’s and 35.9 percent higher than Solano County’s. For prostate cancer, Benicia’s incidence is respectively 70.3 percent and 32.8 percent higher than those of the state and county. For lung cancer, it is 43.3 percent higher than California and 19.4 percent higher than Solano.

The Benicia refinery’s specific violations that spanned at least 16 years, spurring an $82 million Bay Area Air District fine, reflect a broader pattern of emissions violations, accidents and incidents in recent years. Regarding those specific violations: According to the Air District, from at least 2003 to 2019 the Benicia refinery committed “egregious emissions violations,” pouring into the city’s air “harmful organic compounds” containing “benzene, toluene, ethylbenzene and xylene…which cause cancer, reproductive harm and other toxic health effects.” What’s more, “refinery management had known since at least 2003 that emissions from the hydrogen system contained these harmful and toxic air contaminants but did not report them or take any steps to prevent them.”

Valero’s environmental violations and health-and-safety dangers are by no means confined to Benicia. They include numerous incidents, accidents and reports of excessive emissions elsewhere in recent years. They merit attention because they may indicate that such problems are endemic to the firm’s or industry’s operations, or flow from inadequate prioritization of safety/health/environmental hazards, or both. Even the arguably oil industry-friendly Texas Attorney General sued Valero in 2019 for refinery violations there, in effect citing it as an egregious repeat offender.

In reviewing the information shared here, it is important to emphasize that the Benicia refinery’s fine employees are not responsible for the corporation’s track record.

Particularly in view of public health considerations, the city and state should:

      1. seek the facility’s closure within at most one-to-three years, rather than at some indefinite date;
      2. especially given the maintenance and financial challenges for a refinery in its final years, ensure that the refinery adheres to enhanced health-and-safety standards for however long it remains open (including if another petrochemical firm purchases it) and that Valero and any successor owner guarantee a complete and rigorous remediation of the property; and
      3. encourage the Air District to allow Benicia to use funds from the Valero fine to ease the city’s transition away from the refinery and toward cleaner air and a healthier Benicia and Bay Area.
I. Introduction

As Benicia, the Valero Energy Corporation and California consider the future of the Texas-based company’s Benicia refinery, this paper seeks to illuminate two topics that have received inadequate attention in discussion of the facility’s fate: the apparently severe hazards it imposes on the city’s health and safety and the brighter post-Valero future its planned closure could bring. It aims to spark greater scrutiny of these crucial matters.

The paper similarly aims to inform Benicians’ deliberations, the work of the four recently launched Benicia City Council task forces charting a course for life after Valero, and the actions of other officials in their current or future discussions with the corporation.

Relying mainly on online resources, in many regards this document only scratches the surface of Valero’s and the petrochemical industry’s problematic histories of hazardous violations, accidents and incidents, as well as their possible contributions to cancer and other negative health impacts.

The backdrop here is Valero’s April announcement of its plans to cease operations at its Benicia refinery within a year. This has sparked considerable and understandable concern about ramifications for the state and the impact on Benicia’s budget, businesses and jobs. As the corporation negotiates its potential future with California government officials, and notwithstanding its announcement about exploring redevelopment opportunities for the property, whether it will actually close the facility so soon remains in doubt. But Valero is leaving Benicia, sooner or later.

It is accordingly important to consider the inadequately discussed public health dimension and the departure’s potential benefits, which were largely lost in the storm of initial dismay over the departure. Those benefits include enhanced health and safety, the subject of this paper. But they could also feature residential, commercial and industrial development; resulting tax revenues, construction jobs, other employment and a more diversified local economy; blossoming tourism; and rising real estate values no longer burdened by some potential residents’ concerns about moving to a supposed “refinery town”.

The bottom line is that while Valero has its own decisions to make, so does Benicia. For the sake of the health and safety of the community’s children, seniors and everyone in-between, the  city and state should seek the facility’s closure within at most one-to-three years rather than further down the line.

In reviewing the information shared here, it is important to emphasize respect for the Benicians and other fine people employed by the refinery, recognize that they are not responsible for the corporation’s track record, and fervently hope that they land on their professional and financial feet whenever the facility shuts down.

II. Refinery Communities’ Elevated Cancer and Illness Rates

A plethora of studies from across the country and world indicate elevated disease rates in refinery communities. While this essay summarizes several, bear in mind that certain of the studies cited here themselves draw on numerous papers, many of them peer reviewed. Thus, this section reflects the findings of dozens of papers concerning many refineries.

For instance, a wide-ranging study published in 2020 and covering numerous Texas refineries determined that “proximity to an oil refinery was associated with a significantly increased risk of cancer diagnosis across all cancer types examined [bladder, breast, colon, lung, lymphoma, and prostate]. People living within 10 miles of an active refinery were more likely to have advanced disease or metastatic disease.”

A 2020 review of 16 studies concerning various locations found, “Residents from fenceline communities, less than 5 km [about three miles] from a petrochemical facility (refinery or manufacturer of commercial chemicals), had a 30% higher risk of developing Leukaemia than residents from communities with no petrochemical activity.”

The results of a 2009 South Africa study of a community located near a refinery  “support the hypothesis of an increased prevalence of asthma symptoms among children in the area as a result of refinery emissions…”

In a related vein, a 1997-2003 study of persons 29 or younger in Taiwan found that “residential petrochemical exposure [based on distance from petrochemical plants, duration of stay near them and other variables] was a significant risk factor for leukemia” for those 20-29 (though not for younger persons).

Nor is the damage confined to long-term exposure. In Texas, findings from research published in 2016 on the “health effects of benzene exposure among children from a flaring incident at the British Petroleum (BP) refinery in Texas City, Texas…suggest that children exposed to benzene are at a higher risk of developing both hepatic [liver-related] and bone marrow-related disorders.”

Closer to home, a review of emergency room visits in the wake of the 2012 Richmond Chevron fire found that they skyrocketed to roughly ten times their normal levels. “It took 4 weeks for censuses to return to normal. The most common diagnosis groups that spiked were nervous/sensory, respiratory, circulatory, and injury.”

III. Elevated Cancer Rates for Benicia

While Benicia has not been the focus of the kind the rigorous research conducted elsewhere – and while recent medical statistics for the city appear hard to come by – the city’s cancer rates are worrisome.

Drawing on 2010-12 California Cancer Registry data, a 2018 Solano County report highlighting “Health Outcomes Data for Benicia” indicates a Benicia breast cancer rate nearly double that of California. The Benicia rates are substantially higher than Solano Country and California regarding lung and prostate cancer as well. (The data is broken down by zip code, with 94510 essentially constituting Benicia.)

More specifically, the city’s breast cancer rate is 93.7 percent higher than California’s and 35.9 percent higher than Solano County’s. For prostate cancer, Benicia’s incidence is respectively 70.3 percent and 32.8 percent higher than those of the state and county. For lung cancer, it is 43.3 percent higher than California and 19.4 percent higher than Solano.

“Solano County Lung Cancer Rate by Zip Code,” a 2012 chart prepared by the Solano County Public Health Epidemiology Unit, reports similar comparative data. It significantly also indicates that Benicia’s “emergency department discharge rate for lung cancer” ranks among the highest in the county, which in turn is 2.5 times that of California, and that its cancer hospitalization rate is higher than the county’s and the state’s as well.

The higher cancer rates especially stand out because the Health Outcomes report also indicates that in many regards Benicia is healthier than other parts of the county. Considered in combination with the city’s relative affluence, one might accordingly expect lower Benicia cancer rates compared to the county – thus raising the refinery as a possible reason for the higher rates.

None of the above proves that Benicia’s higher cancer levels are due to the Valero refinery’s emissions; correlation of course does not equal causation. But the elevated incidence of cancer in Benicia compared to the rest of Solano County and to California seems unlikely to be a random development. Coupled with two phenomena discussed elsewhere in this paper – that the Benicia refinery’s environmental violations feature spewing high levels of carcinogens into the air and that  proximity to refineries in general is linked to higher cancer rates – the Benicia-specific data provides cause for considerable concern.

IV. The Benicia Refinery’s Numerous Violations, Accidents and Incidents

According to the Bay Area Air District, from at least 2003 to 2019 the Benicia refinery committed “egregious emissions violations,” pouring into the city’s air “harmful organic compounds” containing “benzene, toluene, ethylbenzene and xylene…which cause cancer, reproductive harm and other toxic health effects.” More specifically, “refinery management had known since at least 2003 that emissions from the hydrogen system contained these harmful and toxic air contaminants but did not report them or take any steps to prevent them.” The emissions averaged “more than 2.7 tons for each day on which a violation occurred, over 360 times the legal limit.”

Yet, as significant as that finding and the Air District’s resulting $82 million fine seem, they represent just some of the Benicia refinery’s numerous hazardous violations, accidents and incidents in recent years. Earlier this month, for instance, many Benicians witnessed the clouds of smoke spewing from a refinery furnace fire, for which the facility has already been issued Air District notices of violation.

Last October, the environmental nonprofit Baykeeper’s lawsuit against Valero and nearby Amports yielded a $2.38 million settlement over their air and water pollution from the production of petcoke, an industrial byproduct. As reported by CBS News Bay Area (KPIX), “Petcoke dust contains fine particulate matter that, in the air, can cause serious health impacts like asthma and heart disease. The heavy metals in petcoke can also be harmful in the water to fish and birds.”

In February 2024, a hydrogen sulfide release at the refinery – categorized as a “Level 3” incident due to potential harm to human health – resulted  in the spread of fumes smelling like rotten eggs over much of the City. The incident sparked “concerns about the refinery’s promptness and openness in notifying the City and its residents of hazardous events” and questions about the root causes of the problem.

In August 2023, the Air District “said that Valero had failed to install required pollution control equipment on eight pressure relief devices,  safety devices that prevent extreme over pressurization that could cause a catastrophic equipment failure. The violations led to 165 tons of illegal emissions…”

In February 2023, Valero agreed to pay a $1.2 million U.S. Environmental Protection Agency “…fine over violations of chemical safety regulations…After chemical incidents at the Benicia Refinery in 2017 and 2019, a 2019 EPA inspection at the facility identified several areas of noncompliance, including that Valero failed to immediately report releases of hazardous substances and update certain process safety information.”

The violations, accidents and incidents summarized here cover just some of what has occurred over the past several years. A full list of other hazardous Benicia refinery problems would include many more violations.

This brief discussion would not be complete without mention of Valero’s unsuccessful 2012-16 fight to bring “crude by rail” to Benicia. More specifically, the plan involved the transport to Benicia, on two 50-car trains, up to 70,000 barrels of crude oil per day  from Canada and North Dakota. The potentially deadly danger of this approach was demonstrated by the 2013 Lac-Mégantic disaster, named for the Quebec town where an oil train’s derailment, fire and explosion took 47 lives and decimated the downtown area. From 2013 to 2020, there were at least 21 such derailments in North America, many resulting in massive spills and fires lasting for hours or even days.

V. Valero Refineries’ Violations and Dangers Beyond Benicia

Valero’s environmental violations and health-and-safety dangers are by no means confined to Benicia. They include numerous incidents, accidents and reports of excessive emissions in recent years. They merit attention because they may indicate that such problems are endemic to the firm’s or industry’s operations, or flow from inadequate prioritization of safety/health/environmental hazards, or both.

Valero’s Texas  track record leads the way in demonstrating such problems and hazards. Even the staunchly conservative and arguably oil industry-friendly Texas Attorney General sued the Texas-based corporation in 2019, in effect citing it as an egregious repeat offender that released nearly a million pounds of pollutants into the air during a 2017 fire and committed at least 38 unauthorized, permit-exceeding toxic emissions since 2014. His suit further asserted that, despite earlier federal EPA and state enforcement actions, “defendants’ poor operational, maintenance, and design practices continue to cause emissions events and unauthorized emissions of air contaminants from the Refinery into the environment.”

The AG’s office and state regulators  also sought more than $1 million in damages for a 2016 “backflow incident at the Valero Corpus Christi Asphalt Plant” that resulted in “residents endur[ing] three days without tap water, forcing many to rely on bottled water for drinking, showering and cooking.”

What’s more, a leading Texas environmentalist has contrasted one of Valero’s facilities there unfavorably with other refineries in the state, asserting that “Valero’s Port Arthur Refinery has a poor compliance record even when compared to other Texas oil refineries, spewing out millions of pounds of dangerous pollution into surrounding neighborhoods…”

Five workers recently sued the company for injuries suffered, including third-degree burns involving extended hospitalization, at its Three Rivers, Texas, refinery due to a January 2025 fire and explosion. Over the years, several others have died in explosions and accidents at its Texas facilities.

Valero’s hazards and damage are not confined to Texas (or Benica). Due to an emergency valve malfunction, a 2020 explosion and fire at the company’s Meraux, Louisiana, refinery seriously injured one worker and caused over $5 million in damage.  Tennessee regulators found sixteen “serious, alleged” violations linked to a Memphis refinery’s 2012 explosion that killed one worker and injured two others.

During a February 2025 storm, that same facility experienced massive flames due to flaring as, according to one news report, “ Fire and oil spewed from the stacks requiring environmental clean up on the ground and in the creek nearby.” In addition, “thousands of pounds of a toxic gas were released in the incident,” including “very toxic” sulfur dioxide at levels “twice the amount that triggers mandatory reporting to government regulators.”

More broadly, an EPA review of a dozen Valero facilities across the country found toxic emissions violations and related actions stretching from at least 2012 to 2018. The investigation resulted in a 2020 settlement involving millions of dollars of fines and mitigation measures.

A compilation of air pollution monitoring data drawn from U.S. refineries’ fence lines – aptly summarized by its title, “Nearly Half of U.S. Refineries Releasing Benzene at Levels That Could Pose a Long-Term Health Threat” – included numerous Valero facilities on the list. An associated chart ranked two Valero refineries fifth and sixth nationally in terms of the percentage by which they each exceed the relevant “threat level.”

It should be noted that neither the EPA review nor the air monitoring data compilation identified Valero’s Benicia refinery as problematic. However, it is unclear whether the Benicia facility was even included in the review. Furthermore, the facility’s approach to air monitoring has been the subject of considerable contention.

VI. Potentially Deadly Accidents

The risk of life-threatening accidents merits a bit more mention, since Benicia is by no means immune to such phenomena. This paper has already cited several instances of deadly and injurious refinery accidents, as well as the massive (non-fatal) 2012 Chevron Richmond fire and the 2013 Lac-Mégantic disaster, where a train bearing cargo akin to that of Valero’s failed crude-by-rail plan exploded and took 47 lives.

Instances of catastrophic (fortunately non-fatal) refinery events also include the three-day, February 2025 Martinez Refinery Company fire, which spewed into the air carcinogenic chemicals that can also cause heart and lung disease. Another notorious accident was a huge 2019 Philadelphia refinery fire, sparked by the failure of a pipe’s simple elbow joint. Its multiple explosions hurled several multi-ton pieces of equipment thousands of feet away.

VII. Moving Forward

As Benicia takes its first steps to plan for life after Valero, the City Council, state officials and Benicians should heed the potential public health benefits of the corporation’s departure and the price the city pays in the meantime. More specifically, city, state and other officials should pursue the following paths:

      1. They should recognize that public health considerations weigh heavily against any indefinite extension of the Benicia facility’s operation. The city and state should accordingly seek the facility’s closure within at most one-to-three years, rather than at some indefinite date.
      2. Especially (but not only) if an expedited closure does not take place, the city, state, Air District and other governmental entities should inform Valero and any potential petrochemical buyer/operator of the refinery that they will be subject to enhanced scrutiny and accountability that ensure adherence to strictest health-and-safety standards. This priority becomes all the more pressing as financial pressures could conceivably weigh against maximum maintenance in a facility slated to eventually cease operations. The city and state should also press Valero and any successor owner to guarantee a complete and rigorous remediation of the property
      3. The Bay Area Air District policy for the use of its $82 million Valero fine (and for other air pollution penalties) is to employ such funds to “to improve community health and air quality.” It should accordingly permit Benicia to use funds from the fine to ease the city’s transition away from the refinery and toward cleaner air and a healthier Benicia and Bay Area. City and state officials should play a part in advancing this flexible approach, which should also apply to other refinery-hosting Bay Area communities in transition.

[Notes: 1. This paper benefits from valuable advice from and research by Richard Fleming, M.D., a Benicia resident, and from the much-appreciated assistance of Benicia Independent Editor Roger Straw. However, any possible inadvertent inaccuracies are the sole responsibility of the author. 2. Stephen Golub is a Benicia resident and Harvard Law School graduate who formerly was a management analyst for the New York City Council President and, for the bulk of his career, served as a policy analyst, consultant and researcher for funding agencies, policy institutes and nonprofits engaged with international development – particularly regarding the rule of law, democracy, anti-corruption efforts and policy analysis, including their overlap with public health and environmental concerns. He taught law-and-development and related courses at Berkeley Law and the Central European University Public Policy School for a number of years. The institutions with which he has worked include the U.S., U.K. and Danish development agencies; the Asian Development and World Banks; several UN programs and offices, including that of the Secretary-General; the Asia, Ford and Open Society Foundations; and, currently, the Indian broadcasters WION and CNN-India.]


Benicia resident and author Stephen Golub, A Promised Land

CHECK OUT STEPHEN GOLUB’S BLOG, A PROMISED LAND

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Dirk Fulton: A Great Day for Benicia, Part Three

VALERO: City Sponsored 3-Year Delay of Closure Endangers Our Health & Promotes Risk of Benicia Remaining a Refinery Town Forever

By Dirk Fulton, May 28, 2025

Dirk Fulton, Benicia

The long history of fires, explosions, shelter-in-place orders, and non-stop, cancer-causing toxic air emissions demand a Valero closure in April 2026 as announced. No later.

Using financial scare tactics to delay closure until 2029 as advocated by city officials is unjust to residents and plays into the hands of Valero, which remains vague about its plans.

PROLONGING HEALTH DANGERS

Clearly, the refinery is a bad neighbor. This is demonstrated by the $82 million Air Board fine recently imposed on Valero for the 16 years of secret, toxic emissions it spewed on our town.

We now know that Valero knowingly pollutes our air with toxins 24/7, measuring as much as 2.7 metric tons daily, which incredibly is 360% over Air Board maximums. There is a worrisome correlation between Valero’s troubling refinery operations and high asthma rates among Benicia’s children and high cancer rates, especially lung cancers, among our residents. Waiting until 2029 to regain clean air and protect our health cannot be justified.

WRONGFUL SCARE TACTICS 

The scare tactics used by the city to promote a three year closure delay are overstated and misleading. As I have set forth in prior articles, the largest income to the city from Valero is approximately $8 million in real property taxes. These taxes will not immediately cease upon refinery closure as its developable land and infrastructure improvements retain high inherent value and will increase once homes are constructed along the East Second Street corridor.

Several additional revenue streams are also available upon closure to offset any financial loss. These include:

    • Years-long, multi-million dollar residential and commercial development fees;
    • income from the city’s recapture of Valero’s fifty percent (50%) allocation of our domestic water supply;
    • “ Bridge to the Future” funds from the $82 million Air Board Valero settlement, of which $58 million is assigned to Benicia to mitigate damages from years of pollution;
    • a port tariff cargo fee similar to those earned by other California port cities, such as Richmond, Oakland, Los Angeles and Long Beach, which could measure $13 million annually;
    • increased sales and hotel (TOT) taxes as tourism blossoms;
    • and increased real property taxes on existing homes as values appreciate once the stigma of being a “refinery town” is alleviated.

Accordingly, the city’s leaders should stop spreading bad information.

EXTENDED DELAYS HURT CHANCE TO SHUT DOWN REFINERY– POTENTIALLY FOREVER 

Valero’s future remains unclear and there are reports it is lobbying Governor Newsom to ease environmental rules. The city-advocated three-year delay in closure plays to Valero’s advantage and, conversely, to the detriment of Benicia residents. There are three negative outcomes that a multi-year delay fosters:

    1. Valero can change its mind, whether or not it receives regulatory concessions from the state and continue to operate the refinery indefinitely. This result is in line with statements by a former Valero CEO who publicly stated that his company’s goal was “to keep Valero Benicia open as the last refinery operating in Northern California”.
    2. Valero can sell to another refinery operator, perhaps at a discounted price, which can decide to operate the refinery indefinitely. This result is like Shell Oil’s recent sale of the Martinez refinery to PBF, a shell entity controlled by a private equity group. This has led to one environmental disaster after another, severely harming that community.
    3. Valero can repurpose the refinery as another petrochemical type of operation. This result continues the prospect of the facility being an ongoing major polluter and pushes multi-million-dollar environmental cleanup down the road indefinitely.

PLANNING FOR BENICIA’S FUTURE WITHOUT A REFINERY SHOULD OCCUR IMMEDIATELY AND BE TRANSPARENT

The price is too high for the city to delay the closure of its major polluter for three additional years. Rather than “kicking the can down the road”, risking our health and the chance to close the refinery for good, the city should instead immediately hold community public hearings subject to the Brown Open Meetings Act to create a vision for Benicia without a refinery. This contrasts with private “Task Force” meetings not open to public input or scrutiny that can drag on indefinitely.

Dirk Fulton, Lifelong Benicia resident
Former Solano County Planning Commissioner, Benicia Vice-Mayor, City Councilman & School Board President


Read Dirk Fulton’s series, A Great Day for Benicia


Benicia Councilmembers Scott and Birdseye on potential Valero closure

To our fellow Benicia Residents and Business owners:

By Benicia Councilmembers Kari Birdseye and Terry Scott, May 27, 2025

This is a pivotal moment in our city’s history. The potential Valero refinery closure isn’t just a challenge—it’s our opportunity to reimagine Benicia’s future.

For decades, Valero has been directly woven into our economic fabric. And, woven directly into being a significant charitable partner.

Now, we must face change. We must look ahead with clarity and purpose.

This transition demands thoughtful planning, which is why Mayor Young has established specialized task forces to guide our path forward. These task forces will focus on economic diversification, sustainable development, and community resilience. Their mission is clear: to mitigate impacts while discovering new possibilities for growth.

The success of this transition depends on inclusivity. We need voices from every corner of our community—businesses, schools, environmental advocates, residents, artists, Bay Area Air District and many others —to participate in this process.

Your insights will shape our economic assessment and redevelopment strategy.

The 940 acres that Valero may leave behind could be the catalyst that will act as a transformative site. But it represents more than land—it may represent Benicia’s next chapter.

This may be our chance to rebuild, reimagine, and reinvent our community for generations to come.

We have received our wake up call as a community. Now it’s time to act. The future belongs to those who prepare for it.

Together, let’s create a Benicia that honors our past while boldly and bravely steps toward a more diverse, sustainable, and resilient tomorrow.

Our challenge is to transform Benicia into a resilient and sustainable community through economic diversification and innovative development, ensuring the prosperity of all residents, businesses and attractive to visitors.

To us the mission is clear: proactively manage the transition brought by potential changes in Valero’s operations by fostering economic resilience, supporting workforce development, and promoting sustainable redevelopment.

We aim to ensure the prosperity and well-being of Benicia’s residents through strategic planning, community engagement, and innovative solutions.

Benicia will be a vibrant, sustainable community where cutting-edge innovation harmonizes with small-town charm.

And finally, we envision a city where green, renewable technologies pioneers work alongside revitalized local businesses. Where our historic downtown thrives as a destination for visitors and residents alike, and where cohesive new neighborhoods like Rose Estates, Jefferson Ridge, and the Valero property reinvention, and others, provide diverse housing options and mixed use housing and retail tied together with micro transit opportunities.

Change is hard. But we must control our destiny.

Terry Scott
Kari Birdseye
Benicia Council Members

KQED: Benicia Takes First Steps Toward Future Without Valero Refinery

The City Council on Tuesday unanimously approved a proposal to create four task forces…

The Valero Benicia Refinery in Benicia on May 8, 2025, which processes up to 170,000 barrels of oil a day, making gasoline, diesel and other fuels for California. Valero plans to shut down the Benicia refinery by April 2026, citing high costs and strict environmental rules. The Solano County city is proposing task forces to address the potential fallout of a Valero refinery closure. (Beth LaBerge/KQED)

KQED News, By Matthew Green, May 21, 20125

Benicia city leaders are taking initial steps to prepare for the likely closure of the Valero refinery, a month after the oil giant announced plans to cease operations at its sprawling Solano County facility within a year.

The City Council on Tuesday unanimously approved the mayor’s proposal to create four economic and community-focused task forces to “understand potential economic impacts, develop strategies to mitigate those impacts and plan for the future.”

The groups are intended to ready the small North Bay city for the potentially seismic fallout if Valero makes good on its intent to cease operations at the refinery by April 2026.

Valero is Benicia’s largest employer and accounts for almost 20% of its tax base.

“I think we are taking some serious steps trying to address as many of the known and unknown facts that we have,” said Mayor Steve Young, who tapped specific council members to head each of the groups, and said no one attending the meeting voiced any opposition to the plan. “We’re basically trying to utilize the respective strengths of the council members, all of whom have significant things that they can bring to the table.”

Benicia Mayor Steve Young sits in the City Hall offices in Benicia on May 8, 2025. (Beth LaBerge/KQED)

That includes a group to address economic recovery options for the city as it braces for a massive budget shortfall, and another to collaborate with nonprofits, schools and local sports leagues that have long relied on Valero’s donations, and now face losing their primary funding source.

“We’re in a situation where we’re going to have $10 [million] to $12 million less than last year,” Young said. “The hit on the community is going to be severe. My main job is to ease that transition as much as we can.”

A third group would map out next steps for the city’s port and the many businesses in its industrial park that for decades have supplied equipment and services to Valero, while a fourth would tackle plans to redevelop the 930 acres of land the company owns.

Oakland-based Signature Development Group recently announced it was in talks with Valero to redevelop the land on the eastern side of the city into housing and commercial property.

Doing so, however, would require a costly remediation effort — one Valero is legally required to undertake— that would likely take a decade to complete before any development takes place. During that time, the city would receive no revenue, Young said.

Valero has taken the land off the market, which implies that it’s given Signature the exclusive right to negotiate for it, he said.

“So [Signature’s] got a year to sort of do their due diligence, look at redeveloping options and then at the end of that year presumably buy the site and then move forward with who knows what kind of development options,” Young said.

He noted, however, “there are so many unknowns that probably things will pivot a month from now, three months from now. Six months from now, we might be doing something different.”

Councilmember Terry Scott, whom Young asked to help lead the redevelopment group, said his priority is to focus on the 400 acres of the Valero property that haven’t been used for manufacturing and processing operations. That land wouldn’t require the same degree of remediation, and could potentially be turned into housing and other uses within several years.

As for the refinery property, he said, the city would need to court industries that could operate on land that will remain fairly contaminated, even after the remediation process.

A fire at the Valero Oil Refinery in Benicia, California. The fire comes just weeks after Valero executives announced they were considering closing the sprawling refinery by next April. (Courtesy of Bay Area Air District)

“There’s gonna be some pretty bad brown spots there,” said Scott, who is hoping to attract less-polluting industries to replace the refinery. “This will not be growing gardens, and having front lawns and having kids running across it.”

Valero’s announcement in mid-April to “idle, restructure or cease” operations at the refinery that it’s operated since 2000, caught Young and other city officials completely off guard. The company cited California’s tough “regulatory and enforcement environment” as the main driver behind its move to consider closing the sixth-largest refinery in the state, which makes up about 9% of the state’s total crude oil capacity.

The news dropped less than two weeks after the City Council unanimously approved modest rules to increase their oversight of the refinery, and some six months since regional and state air regulators fined the company a record $82 million for secretly exceeding toxic emissions standards for more than 15 years.

Although that money is reserved for future public health initiatives, Young said he is pressing regulators to consider “a lenient and liberal” interpretation of what they mean by public health, so that Benicia leaders may use those funds “to offset some of the losses that the city’s going to see.”

Young also hopes he can help broker a deal with Valero and state officials to convince the company to continue operating the refinery for at least a few more years. He additionally intends to make the case that closing the facility next year could pose a serious national security threat, as it’s currently the sole provider of roughly 50 million gallons of jet fuel to nearby Travis Air Force Base, which it delivers via a direct pipeline.

“The threat of no jet fuel for Travis potentially puts the future of the whole base at risk,” he said. “If we could get three years instead of one year, that certainly eases the transition period for the city and gives us a little bit of breathing room to try to stabilize the financial hit that we’re going to see, and at the same time, plan for the eventual closure.”

Young said members of the City Council and community leaders have so far been generally supportive of the proposal to form task forces as part of the city’s abrupt effort to begin processing and planning for an uncertain future. People, he said, are glad to see that the city is at least trying to create a blueprint.

“Even though a lot of it is out of our hands, we are addressing it to the best of our ability so far,” he said.

Scott called Valero’s announcement last month “a warning shot” that he hopes will galvanize the community into action.

“We cannot let weeks or months go by without really looking at the future and saying, what are the things that we can do?” he said.


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